Posts Tagged ‘minimum wage’

Texas vs. California Update for July 11, 2017

Tuesday, July 11th, 2017

Long time no Texas vs. California update. I’ve been busy.

  • California’s descent into socialism:

    In the end, we are witnessing the continuation of an evolving class war, pitting the oligarchs and their political allies against the state’s diminished middle and working classes. It might work politically, as the California electorate itself becomes more dependent on government largesse, but it’s hard to see how the state makes ends meet in the longer run without confiscating the billions now held by the ruling tech oligarchs.

  • Lots of comparisons between California and the rest of the nation. Like: “California has a nasty anti-small business $800 minimum corporate income tax, even if no profit is earned, and even for many nonprofits.” And “CA public school teachers the 3rd highest paid in the nation. CA students rank 48th in math achievement, 49th in reading.”
  • All across California, higher pensions equal fewer government services:

    Across California, many local governments have raised taxes while cutting services. Local officials desperate for union support have made irresponsible deals with public employee unions, creating staggering employee costs. Taxpayer money meant to provide essential services to the least well-off instead goes directly to higher salaries and benefits.

    In Santa Barbara County, the 2017-2018 budget calls for laying off nearly 70 employees while dipping into reserve funds. The biggest cuts are to the Department of Social Services, which works to aid low-income families and senior citizens. Meanwhile, $546 million of needed infrastructure improvements go unfunded as Santa Barbara County struggles to pay off $700 million in unfunded pension liabilities. County officials estimate that increasing pension costs may cause hundreds of future layoffs.

    Unfortunately, Santa Barbara County is far from alone. Tuolumne County is issuing layoffs in the face of rising labor and pension costs from previous agreements. In Kern County, a budget shortfall spurred by increased pension costs has led to public safety layoffs, teacher shortages, budget cuts, and the elimination of the Parks and Recreation department, even as Kern County’s unfunded pension liability surpasses $2 billion. In the Santa Ana Unified School District, nearly 300 teachers have been laid off after years of receiving pay raises that made them unaffordable, including a 10% raise in 2015.

    In Riverside County, non-union county employees took the blow for the county’s irresponsible pension deals, as all but one of the 32 employees the county laid off this June were non-union members. This came after contract negotiations granted union employees hundreds of millions of dollars in raises. The Riverside County DA said these raises caused public safety cuts. In addition, Riverside County imposed an extra 1% sales tax to pay for these benefits. Across California, citizens suffer as local governments give away their money while cutting their services.

    (Hat tip: Pension Tsunami.)

  • That Awkward Moment When Saudi Arabia Is More Pro-American Than California:

    Don’t think I’m going soft on the Saudis. I’ve just not seen a recent image from California where there were this many American flags and none of them were on fire.

    But let’s not forget that we are dealing with a corrupt, degenerate, autocratic state where there is no free speech, where universities are run by fanatics who indoctrinate students with radical ideology; where street thugs aligned with the ruling party freely commit acts of violence against opposing views, and whose ruling elite routinely violates the basic rights of Christians and other minorities. Also, Saudi Arabia is pretty bad too.

  • A piece on California banning public employees from traveling to Texas over various social justice warrior causes. I haven’t met anyone in Texas who doesn’t count that as a win/win situation.
  • The whole thing is an example of California’s Democrat-controlled government favoring virtue signaling over actual governance.

    Whether you agree or disagree with [religious liberty] laws, they don’t seem like any of our state’s business. California passes its share of laws that might offend any number of Nebraskans or North Carolinians, but we don’t see travel bans on official visits to Los Angeles or San Francisco. Federalism is a wonderful thing. Each state gets to pass laws that reflect the values of its voters.

    (Hat tip: Pension Tsunami.)

  • There was a big, biased piece in New Yorker about Texas politics. Instead of linking to it, I’m going to link to Cahnman’s takedown of it.
  • California pension funds are going broke because math is hard:

    Unlike water deficits, pension deficits compound. As a result, years of healthy investment earnings cannot close pension deficits. Ironically, Walker herself supplies the proof with these two sentences from her op-ed:

    • “[CalPERS’s] investment returns over the last 20 years have averaged 6.7 percent.”
    • “[CalPERS’s] funded ratio [today] is at about 63 percent.”

    Yet CalPERS’s funded ratio 20 years ago was 111 percent! Ie, despite averaging a wonderful 6.7 percent annual return for 20 years, CalPERS’s funded ratio fell 48 percentage points. That’s because pension liabilities compound at high rates.

    (Hat tip: Pension Tsunami.)

  • “Illinois at the brink: Parallel should give Californians pause….As in Illinois, the Democrats who control California politics use their power first and foremost to protect the interests of public employee unions — not the poor and powerless. This has created an entrenched pension-protection complex.”
  • Helping Californians move to Texas isn’t just an idea, it’s a business model:

    Paul Chabot was a hard working candidate for Congress in the Redlands area. He lost twice and decided that California was no longer a decent place to raise his family—so he moved to Texas. Now he is organizing conservatives and family people to move to Texas. There is an effort to re-populate that State of New Hampshire—indeed former San Diego Assemblyman Howard Kaloogian moved to the Granite State, along with thousands of other Americas.

    “So Chabot has found a new pursuit. Last week, he launched the website Conservative Move. It’s a business aimed at helping people leave blue states like California and move places where they might be a little more comfortable — like North Texas, where Chabot and his family moved in January.

    “The purpose of this organization is to help other families create an opportunity where we didn’t have much guidance,” Chabot says.

    After the election, Chabot searched for a community that appeared to uphold the values that he and his family held dear, like safe streets and good schools. Eventually, they decided on McKinney, Texas, a city about 40 miles north of Dallas with a population around 150,000.”

    (Hat tip: Pension Tsunami.)

  • Missed this for the last Texas vs. California update:

    On Tuesday, May 6th, Nick Melvoin and Kelly Gonez, who are more concerned with the needs of parents, kids and taxpayers than stoking the bureaucracy and complying with teacher union diktats, were elected to the Los Angeles Unified School District board. Reformers are now the majority of the seven member governing body in America’s second largest city.

    Melvoin, especially, was vocal in his campaign that the school district needs a major shake-up, including a call for more charter schools. He also stressed the need for fiscal reform, which includes a reworking of the district’s out-of-control pension and healthcare obligations. In December, LAUSD Chief Financial Officer Megan Reilly told the school board that the district may not be able to meet its financial obligations in the future because it faces a cumulative deficit of $1.46 billion through the 2018-2019 school year. While that dollar amount has been disputed in some quarters, there’s no doubt that the district is facing a budgetary crisis. It’s also no secret that an abysmal graduation rate (pumped up with the help of fake “credit recovery” classes) and shrinking enrollment have taken a serious toll on LAUSD. Also, in 2015, only one in five 4th-grade students in Los Angeles performed at or above “proficient” in math and reading on the National Assessment of Educational Progress.

    Needless to say, anything that bodes well for parents and taxpayers will rankle the teachers unions, and the LA school board race was certainly no exception. Not only did the young Turks (Melvoin is 31 and Gonez 28.), defeat the unions’ candidates, they raised more money – in Melvoin’s case far more – than their opponents. This was a rare occurrence, because historically teachers unions have greatly outspent their opponents to get their candidates elected, especially in high-profile elections. But this time the unions could not compete with the likes of philanthropist Eli Broad who donated $450,000 to the campaign and former LA Mayor Richard Riordan who contributed over $2 million. Additionally, Netflix CEO Reed Hastings donated nearly $7 million since last September to CCSA Advocates (the political wing of the California Charter School Association), which spent almost $3 million on the board election.

    On the union side the United Teachers Los Angeles was the big spender, pitching in about $4.13 million, according to city filings. But much of this money came from the UTLA’s national partners. The American Federation of Teachers gave UTLA $1.2 million and National Education Association, $700,000.

  • More on the same subject. “Melvoin, especially, was vocal in his campaign that the school district needed a major shakeup, calling for more charter schools. He also stressed the need for fiscal reform, including a reworking of the district’s out-of-control pension and health-care obligations.”
  • California teacher who was laid off shortly after winning her school’s Teacher of the Year award takes her union to court:

    Bhavini Bhakta never intended to become an activist, but after being laid off six times in the first eight years of her career as an elementary school teacher in the Pasadena suburbs, she decided to get involved in the education reform movement. She focused first on challenging seniority-based layoffs, which in turn led her into conflict with the California Teachers Association. Now she is a plaintiff in Bain v. CTA, a case which challenges the dues structure of unions as a violation of the First Amendment. The suit seeks to restore voting rights on union matters to agency fee payers, who pay full dues for representational activities but opt out of paying for lobbying and political activities.

    “The state union forcibly takes our money and uses it to misrepresent us. They’re not serving the teachers on the ground,” she said in an interview with the Washington Free Beacon. “They’re using my money for their own purposes.”

  • Tenure reform is the only big education reform under debate in California this year.
  • Back in May: ICE Nabs 188 In LA During 5-Day Operation. (Hat tip: Director Blue.)
  • “Soros-Linked Groups Behind California Ban on Detaining Illegal Immigrants.” (Hat tip: Director Blue.)
  • California uses one credit card to pay off another. (Hat tip: Pension Tsunami.)
  • “Amid Funding Shortfall, Santa Ana Raises Median Police Compensation Above $213,000.” (Hat tip: Pension Tsunami.)
  • California Democrats receive death threats for daring to point out that single-payer socialized medicine bill is pie-in-the-sky malarkey without a funding mechanism.
  • Let California try single payer…and deal with the consequences.
  • So how’s that minimum wage hike working out? At least 60 restaurants around the Bay Area had closed since September.
  • San Francisco has a staggering $5.8 billion pension liability, and a series of retroactive benefit increases approved by voters over a dozen years is largely to blame.” (Hat tip: Pension Tsunami.)
  • California farmer facing a $2.8 million fine for plowing his own field. (Hat tip: Ed Driscoll at Instapundit.)
  • California voters pass legislative transparency measure. California’s Democratic legislators ignore it. (Hat tip: Ace of Spades HQ.)
  • Committing felonies on the job is no reason to give up your cushy pension:

    Mark Peterson, the Contra Costa district attorney forced to resign as part of a felony perjury conviction, cut a sweet plea deal with state prosecutors allowing him to keep most of his pension.

    The deal will probably let him walk away with starting annual retirement payments of about $128,000 in addition to Social Security benefits. That’s because he pleaded no contest to only the most recent of 13 felony counts stemming from his illegal tapping of campaign funds for personal use.

    (Hat tip: Pension Tsunami.)

  • “California Democrats Want Data on Lobbyists’ Race, Sexual Orientation.” Social justice Warriors wanting to milk the graft cash cow? Get the popcorn!
  • San Francisco to pay illegal alien $190,000 for violating their own sanctuary city policy. (Hat tip: Gabriel Malor’s Twitter feed.)
  • Just how big is Houston? Take a look at these overlay maps.
  • Texas Governor Greg Abbott celebrates the opening of Toyota’s American headquarters in Plano:

    Today we celebrate another milestone marking the incredible momentum of Texas’ continuing economic expansion. Toyota Motor North America joins Hulu, Jacobs Engineering, Mitsubishi Heavy Industries, Kubota, Jamba Juice, Sabre and many other innovative industry leaders who have decided to go big in Texas.

    Our greatest natural resource in the Lone Star State is the hardworking people of Texas. And that work ethic draws global leaders like Toyota to Texas every day. With the second-largest workforce in the nation at more than 13 million strong, Texas continues to be a national leader in job creation. In fact, more Texans have jobs today than ever before, even as more people are moving here every year from states that overtax and overregulate.

  • Why Texas is so attractive for business relocation:

    During his latter years in office as Texas governor, Rick Perry made it a priority to lure businesses to the state, particularly from California. Two-and-a-half years into the term of Gov. Greg Abbott, the successor to Perry, the pace of corporate relocations to the Lone Star State shows no signs of slowing down.

    Much has been written about the state’s business-friendly environment. Most businesses in Texas that aren’t sole proprietorships or partnerships pay a 1 percent or lower “franchise tax,” in lieu of a traditional corporate income tax. In addition, the state’s governing bodies tend to favor minimal regulations and sponsor research and development initiatives.

    The state’s economy is healthy, evident by strong employment growth. The Texas Workforce Commission reports a net gain of 210,000 jobs across the state in 2016, and employers are projected to add another 225,000 jobs in 2017.

    Equally important to strong job growth is the quality of life that employees are promised upon relocating.

    According to Robert Allen, president of the Texas Economic Development Corp., the lifestyle element is perhaps the most common incentive for moving to Texas among executives and employees alike.

    “When we ask executives why they’re moving to Texas, what we hear is that providing a high quality of life for their workforces is number one on their lists,” says Allen.

    “Employees back that claim up. They’re able to buy larger houses, keep more of their incomes, send their kids to good schools and live in safe neighborhoods. This makes it easier for employees to take a leap of faith,” he adds.

    Texas has no personal income tax. Its education system currently ranks 21st based on a state-by-state study by wallethub.com, a credit scoring and reporting site. The study considers factors such as average SAT/ACT score, dropout rates, student-teacher ratios, graduation rate for low-income students and remote-learning opportunities within online public schools. The Huffington Post also notes that Texas has the fourth-highest graduation rate in the country, despite its ever-growing population and high percentage of non-native-English-speaking students.

    And according to a recent study from the NYU School of Law, while violent crime rates are rising in urban areas throughout the country, they’re holding steady in Texas. The state’s murder rate falls in the middle of the pack despite it being a national leader in population growth.

  • And Californians are still flocking to Texas.
  • Los Angeles, San Francisco homeless woes worsen despite funding boosts.”
  • “Federal judge blocks California ban on high-capacity magazines.” Note that’s not just a sale ban: “The law would have barred people from possessing magazines containing more than 10 bullets.” (Hat tip: Director Blue.)
  • “A former Diablo Valley College professor was arrested Wednesday in connection with the use of a bike lock in the beating of three people during a rally for President Donald Trump last month, police said Thursday.” I guess that’s the “high road” liberals keep talking about… (Hat tip: Instapundit.)
  • Bonus: He was tracked down by 4Chan, who are supposedly working on a face database of Antifa members.
  • Student Agreed to Orgy, But Later Called It Sexual Assault, Lawsuit Claims. Judge says that University of California, Santa Barbara, may have denied accused male student due process.”
  • “San Francisco supervisor Norman Yee recently proposed legislation that would prohibit autonomous delivery robots – which includes those with a remote human operator – on public streets in the city.” (Hat tip: Ed Driscoll at Instapundit.)
  • Texas vs. California Update for April 20, 2017

    Thursday, April 20th, 2017

    This didn’t get done while I was doing my taxes, but here, at last, is another giant Texas vs. California update:

  • Appeals court finds San Diego’s pension reform legal. “California’s Fourth District Court of Appeal unanimously overturned a 2015 state labor board ruling that said the cutbacks were illegal because of then-Mayor Jerry Sanders’ involvement in the successful citizens’ initiative that made the changes.” San Diego transitioned to a 401K style program. Naturally public employee unions screamed bloody murder and sought to have the reforms overturned. (Hat tip: Pension Tsunami.)
  • Unions attempts to role back San Diego’s pension reforms amounted to an attempt to retroactively apply collective bargaining to older laws.
  • More: It’s “shocking the agency’s officials would have even argued that a union’s right to negotiate pay and benefits trumps the public’s right to hold an election.” (Hat tip: Pension Tsunami.)
  • “The number of people enrolled in Medicaid and the Children’s Health Insurance Program (CHIP) in California alone exceeds the total populations of 44 of the other states of the union, according to data published by the Centers for Medicare and Medicaid Services (CMS) and the Census Bureau.” (Hat tip: Director Blue.)
  • California exports its working poor to Texas.

    Every year from 2000 through 2015, more people left California than moved in from other states. This migration was not spread evenly across all income groups, a Sacramento Bee review of U.S. Census Bureau data found. The people leaving tend to be relatively poor, and many lack college degrees. Move higher up the income spectrum, and slightly more people are coming than going.

    About 2.5 million people living close to the official poverty line left California for other states from 2005 through 2015, while 1.7 million people at that income level moved in from other states – for a net loss of 800,000. During the same period, the state experienced a net gain of about 20,000 residents earning at least five times the poverty rate – or $100,000 for a family of three.

    Snip.

    The leading destination for those leaving California is Texas, with about 293,000 economically disadvantaged residents leaving and about 137,000 coming for a net loss of 156,000 from 2005 through 2015. Next up are states surrounding California; in order, Arizona, Nevada and Oregon.

  • Hat tip for the above is this Zero Hedge piece, which notes “By some measures, California has the highest poverty rate in the nation. And as more and more residents leave, the burden to fund the state’s welfare exuberance will fall more and more on the wealthier (that actually pay taxes). Rather than secession, perhaps it’s time for the wealthy to join ‘the poor’ exodus and beat the crowd out of California…”
  • A look at a California tent city of 1,000 people.
  • Kevin Williamson on why Houston’s diversity is different than the liberal ideal of same:

    Living in a place where it is less of a struggle to pay the rent or make the mortgage payment does indeed chill most everybody out a little bit. But it is not at all obvious that what Houston — or Texas at large — enjoys is in fact a culture that is generally welcoming to immigrants in a way that is different from Scottsdale or Trenton or Missoula. What Texas does have is something close to the opposite of that: a large and very well-integrated Mexican-American community. Anglos in Texas aren’t welcoming to Latinos because we are in some way uniquely open to the unfamiliar, but because they are not unfamiliar.

    This matters in ways that are not obvious if you didn’t grow up with it. My native West Texas, along with the whole of the border and much of the rest of the state, has a longstanding, stable Anglo–Latin hybrid culture. Houston does, too, but Houston, being a very large city, is a little more complicated; I had lunch yesterday with a conservative leader who chatted amiably with the staff in Spanish at . . . an Indian restaurant.

    That robust hybrid culture ensures that the people Anglos hear speaking Spanish are not always poor, not mowing the lawn or cleaning a hotel room, that they are not usually immigrants, not people who cannot speak or read English — not alien. They are neighbors who, if you are lucky, make Christmas tamales. And they might be your employer or your employee, the guy who sells you a car or approves your car loan, a pastor at your church, a professor, a member of your Ultimate Frisbee team . . . or an illegal immigrant, or a criminal, or someone who is in some way unassimilated, alien, or threatening. When one out of three people in your county is “Hispanic” — a word that in Texas overwhelmingly means “Mexican-American” — then you tend to know Hispanic people of all descriptions: the good, the bad, and the ordinary.

    That is not the case in, say, Arlington, Va., which does not have a large and well-assimilated Mexican-American population but does have a large and poorly assimilated population of Spanish-speaking immigrants. The two things are not the same — more like opposites. Add to that the fact, sometimes lost on Anglos, that there is no such thing as a “Hispanic” culture or population, that people with roots in Mexico do not think of themselves as being part of a single cultural group that includes people from Central America and South America. A while back, I heard an older fellow of Mexican background complaining about the Guatemalans moving into his area — and he was an illegal immigrant. That’s a funny reality: In Texas, even some of the illegals don’t think that we can let just anybody cross the border. But ethnic politics is a strange business: In West Texas, young whites without much money (college students and the like) who would never for a moment seriously consider moving into a low-income black neighborhood will not give a second thought to moving into a largely Hispanic neighborhood.

    All of which is not to say that Texas does not have a fair number of poorly assimilated Spanish-speaking immigrants: It surely does, especially in the big cities. (People forget how urban Texas is: Six of the 20 largest U.S. cities are in Texas.) But it is easier to accommodate — and, one hopes, to assimilate — those newcomers when you have a culture of mutual familiarity and trust, which is based not on newcomers but on oldcomers. Texas’s ancient Mexican-American community — whose members famously boast, “We didn’t cross the border, the border crossed us!” — is a kind of buffer that makes absorbing newcomers less stressful.

  • Leaving coastal California is a ‘no-brainer‘ for some as housing costs rise.”

    Huntington Beach residents Chris Birtwistle and Allison Naitmazi were about to get married and decided it was time to buy a home.

    They wanted to stay in the area but couldn’t find a house they both liked and could reasonably afford — despite a dual income of around $150,000.

    So they decided to go inland — all the way to Arizona, where they recently opened escrow on a $240,000, four-bedroom house with a pool just outside Phoenix. Their monthly mortgage payment will be about $500 less than what they paid for a two-bedroom apartment in the Orange County beach community.

  • “California again leads list with 6 of the top 10 most polluted U.S. cities.” Versus zero for Texas. So they have the nation’s most stringent pollution laws…and the nation’s worst air pollution. (Golf clap) (Hat tip: Chuck DeVore’s Twitter feed.)
  • 16 Reasons Not To Live In California. Samples (snippage implied):

    #2 Out of all 50 states, the state of California has been ranked as the worst state for business for 12 years in a row…
    #3 California has the highest state income tax rates in the entire nation. For many Americans, the difference between what you would have to pay if you lived in California and what you would have to pay if you lived in Texas could literally buy a car every single year.
    #4 The state government in Sacramento seems to go a little bit more insane with each passing session.
    #5 The traffic in the major cities just keeps getting worse and worse. According to USA Today, Los Angeles now has the worst traffic in the entire world, and San Francisco is not far behind.

  • CalSTRS’ funded status falls to 64% as deficit grows $21 billion following rate reduction.” (Hat tip: Pension Tsunami.)
  • Texas is on its way to passing a conservative budget.
  • A Democrat-sponsored bill in the California legislature guarantees free healthcare for all, without specifying a way to pay for it. Maybe they’ll institute a unicorn tax… (Hat tip: Stephen Green at Instapundit.)
  • Leslie Eastman at Legal Insurrection spells out exactly what Californians would actually get under the plan:
    • With no choice, there is no competition, unless you are wealthy enough to leave the state for medical care. However, this is a golden opportunity for medical tourism companies!
    • There will be a limited supply of doctors, as those who don’t want to go through the bureaucratic hoops for procedures and payment will also leave the state.
    • Clinicians will be forced to make their treatment decisions based on the state-run rules: Why choose surgery when a pill will do?
    • Shockingly, some funds need to be directed to other budget items instead of perks for illegal aliens (refer to Oroville Dam for a handy reference).
    • Medicare, the system that is the foundation for this proposal, is rife with waste, fraud and abuse (e.g., 3 Floridians bilked the system for $1 billion).
    • Co-pays and deductibles will be transformed into monies paid for non-state government healthcare services (like the Canadians who cross into the United States to obtain MRI’s and other innovative treatments).
    • Public oversight will translate into political wheeling-and-dealing strictly for the benefit of those plugged into the rigged system. An indication that Sacramento may be headed for such a system, I offer this piece published in The Sacramento Bee for consideration: Why California must accept more corruption.
    • The cost of drugs has soared, despite Obamacare. As an example, I had a skin medication that would cost me $150 for an annual supply. The same medication now costs nearly $1000 a year, and I no longer use it.
  • In order to further bestow members of the ruling Democratic coalition with rights and privileges mere citizens don’t enjoy, California’s Senate Bill 807 proposes making teachers exempt from state income tax. Some pigs are evidently way, way more equal than others…
  • Teacher’s unions have helped create California’s teacher shortage. (Hat tip: Pension Tsunami.)
  • California hikes its gas taxes yet again, making them the highest in the nation.
  • Pension liabilities are pinching in Gilroy, California: “Gilroy’s three biggest public employers have amassed more than $183 million in unpaid pension liabilities. That’s likely more than ever, and a figure that, absent major reform, will grow and siphon budget funds from essential public services, say officials and pension experts. In Gilroy, 23 city pensions exceed $100,000 and more than 60 exceed $70,000.” (Hat tip: Pension Tsunami.)
  • Court to determine whether California’s public employee union members can simply continue to buy years of service rather than actually working them.
  • Silicon Valley slows down. “Tech companies in San Francisco and San Mateo counties lost 700 jobs from January to February and tech employment has dropped by 3,200 jobs since hitting a peak last August.”
  • What the lords of Silicon Valley actually think: “Inequality is a feature, not a bug.”
  • Hold on to your seats for this one: California’s government actually did something right, legalizing the selling of home-made food. (Hat tip: Instapundit.)
  • “Hotel construction continues apace in the United States, and dozens of new properties are expected to open this year in two major corporate and tourist destinations, New York and Los Angeles. But the three other cities with the most hotels projected to open in 2017, according to the industry research company STR, are all in Texas — Dallas, Houston and Austin.” Notice the implied condescension in the NYT piece: New York and LA are real places, whereas Dallas, Houston and Austin are “other cities.”

    More:

    The number of new hotels in Texas is notable. In 2017, Marriott plans to open eight hotels in Austin, seven in Houston and 23 in the Dallas-Fort Worth area, according to the company. Ninety-two other Marriott hotels are in the planning stages for the three metro areas. Hilton says it is planning for 75 new hotels there. InterContinental Hotels Group has more than 100 hotel projects in the Austin, Dallas and Houston metro areas, including the Candlewood Suites, Crowne Plaza, Even Hotels, Holiday Inn Express, Holiday Inn, Hotel Indigo, InterContinental Hotels and Resorts and Staybridge Suites brands.

    Austin is home to the state capital; the University of Texas at Austin, a campus with 50,000 students; and a long list of technology companies. Its growing recreation and dining scene is attracting more leisure travelers, filling guest rooms on weekends and making the city “more of a seven-day-a-week hotel market,” according to Tim Powell, the managing director for development for Hilton’s southwest region.

  • A bankruptcy judge in the Eastern District of California plays Santa Claus with a bank’s money.
  • Just what illegal aliens cost California.
  • “L.A. To Worsen Housing Shortage With New Rent Controls.”
  • “California Dems Promise Taxpayer Dollars to Defend Illegal Immigrants.” (Hat tip: Stephen Green at Instapundit.)
  • Calpers Is Sick of Paying Too Much for Private Equity…Pension fund’s private-equity returns were 12.3% over 20 years, but they would have been 19.3% without fees and costs.” (WSJ hoops apply.) (Hat tip: Pension Tsunami.)
  • “Texas top state for number of new, expanded corporate facilities for fifth consecutive year.”
  • It’s not just Oroville Dam that needs maintenance: a section of Highway 50 collapsed in February. (Hat tip: Director Blue.)
  • “Jerry Brown wants to spend nearly $450 million on flood control following dam emergency.”
  • “A state senator is removed from the chamber for her comments about Tom Hayden and Vietnam.” Namely for noting that Hayden supported “a communist government that enslaved and/or killed millions of Vietnamese, including members of my own family.” Sen. Janet Nguyen (R-Garden Grove) came to America as a Vietnamese refugee, and Democrats were incensed she was allowed to speak truth to power when it came to hagiography for one of their own. (Hat tip: Instapundit.)
  • Crime Increasing in California After ‘Prison Reform.'”
  • Selling carbon indulgences just isn’t what it used to be under Trump:

    February’s quarterly auction of carbon dioxide emission allowances under California’s cap and trade program was another financial washout for the state.

    Results for last week’s auction were posted Wednesday morning, revealing that just 16.5 percent of the 74.8 million metric tons of emission allowances were sold at the floor price of $13.57 per ton.

    The state auctions emission allowances to polluters and speculators as part of its program to reduce greenhouse gases. The proceeds are supposed to be spent on public programs to slow climate change.

    February’s auction is being closely watched by market analysts because the last three quarterly auctions in 2016 posted sub-par results.

    Almost all of February’s proceeds went either to California’s utilities, who sell allowances they receive free from the Air Resources Board, or the Canadian province of Quebec, which offers emission allowances through California. Both are first in line when auction proceeds are apportioned.

    The ARB was offering 43.7 million tons of state-owned emission allowances, but sold just 602,340 tons of advance 2020 allowances, which means the state will see only $8.2 million, rather than the nearly $600 million it could have received from a sellout.

    (Hat tip: Chuck DeVore on Twitter.)

  • California’s high speed train-to-nowhere is still doomed.
  • “Six former LA safety officers collected pension payouts of over $1,000,000 apiece last year.” (Hat tip: Pension Tsunami.)
  • “Oakland Fire Chief Announces Retirement Days After Pension Vested, Warehouse Fire Probe Continues.”
  • San Rafael has the the highest pension costs in California by percentage of their total budget (18%). “Money that goes to one thing can’t go to another thing, so if you’re spending almost $1 out of $5 on pension payments, that is a lot less money available for tangible public services such as filling potholes, keeping the library open and making sure there is sufficient police protection.”
  • Remember Anthony Silva, mayor of formerly bankrupt Stockton? He’s been arrested again, this time for embezzling “at least $74,000 from the Stockton Kids Club over the past five years.” That would be the same Anthony Silva who is a member of Mayors Against Illegal Guns, whose own guns were stolen and used in crimes, and who was also arrested for “for playing strip poker with minor and giving them alcohol while at a youth camp.” Given such august leadership, I can’t imagine how Stockton went bankrupt… (Hat tip: Dwight.)
  • New survey of the Permian Basin in Texas shows that there’s another 20 billion barrels of recoverable oil than previously thought.
  • More on the fracking boom:

  • Minimum wage hike watch: Wendy’s to try out more than 1000 self-serve kiosks.
  • San Francisco’s wage hike is already closing restaurants. Especially those that serve affordable food. (Hat tip: Instapundit.)
  • California’s “hide actor’s age” law struck down.
  • “Former L.A. County Sheriff Lee Baca found guilty on obstruction of justice and other charges.” (Hat tip: Dwight.)
  • I would like to celebrate Austin Austin having the shortest commute time in this study of major cities except, since I now experience that commute time every weekday, I can tell you that 16 minute estimate is utter crap. Maybe Austin is the best if the commute time for other cities is similarly underestimated. By contrast, the Austin rental rate of $476 a week seems slightly high, while the London rate of $489 a week seems way too low…
  • Kubota Tractor Corp. finished its’ U.S. headquarters from Torrance, California, to Grapevine, Texas. (Previously.)
  • “West Plano’s $3 billion Legacy West development has landed another big name business. Boeing will locate the headquarters for its newly formed global services division in the 250-acre mixed-use project at the Dallas North Tollway and State Highway 121.”
  • Los Angeles-based fashion company Nasty Gal declares bankruptcy. Also, nice proofreading on this subhead, LA Times: “Why couldn’t they the company hold on to shoppers?” Note: That’s still up for a story published February 24th…
  • Los Angeles clothing brand BCBG Max Azria Group, owner of Hervé Leger, also filed for bankruptcy.
  • The City of St. Louis sues the NFL, and all 32 NFL teams, over the Rams relocation to Los Angeles.
  • “L.A. County Sheriff’s Department switches from silver to gold belt buckles at a cost of $300,000.” That’s some might fine resource allocation there, Lou… (Hat tip: Stephen Green at Instapundit.)
  • Texas vs. California Update for February 15, 2017

    Wednesday, February 15th, 2017

    Welcome to another Texas vs. California Roundup!

  • California Governor Jerry Brown wants to hike gas taxes by 42% to bail out CalPERS.
  • Brown’s pension reforms have failed:

    Since 2012 passage of his much-heralded changes to state retirement laws for public employee, the pension debt foisted on California taxpayers has only grown larger.

    The shortfall for California’s three statewide retirement systems has increased about 36 percent. Add in local pension systems and the total debt has reached at least $374 billion. That works out to about $29,000 per household.

    It’s actually much worse than that. Those numbers are calculated using the pension systems’ overly optimistic assumptions about future investment earnings.

    Using more conservative assumptions, the debt could be more than $1 trillion.

  • And speaking of Brown: Math is hard.
  • Why California can’t repair its infrastructure: “California’s government, like the federal government and most other state and local governments, spends its money on salaries, benefits, pensions, and other forms of employee compensation. The numbers are contentious — for obvious political reasons — but it is estimated that something between half and 80 percent of California’s state and local spending ultimately goes to employee compensation.”
  • Put another way: “Governor Moonbeam and the other leftist kooks in charge are flushing a staggering $10 billion down an unneeded high-speed rail project, on top of the still more staggering $25.3 billion per year they spend on the illegal aliens they have gone out of their way to welcome.” (Hat tip: Director Blue.)
  • California can’t afford green energy:

    California has the highest taxes overall in the nation, worst roads, underperforming schools, and the recent budget has at least a $1.6 billion shortfall.

    Moreover, depending on how the numbers are analyzed California has either a $1.3 or a $2.8 trillion outstanding debt. This is before counting the maintenance work needed for infrastructure, particularly roads, bridges and water systems. Yet tax increases aren’t covering these obligations.

  • Three of the ten least affordable cities in the World are in California: Los Angeles, San Francisco and San Jose.
  • Austin named best city to live in the U.S. But wait! San Jose ranks third! I can only assume that “affordability” was not a significant criteria. Dallas/Ft. Worth ranks 15th (one ahead of San Francisco), Houston 20th, San Antonio 23rd (one behind San Diego).
  • “A sizzling residential real estate market fueled by incoming Californians, low supply, high demand, flat salaries, and local property taxes are pricing people out of homeownership in Austin.” More: “The Texas A&M Real Estate Center examined the Austin local market area (LMA) over five years. In January 2011, the Austin-Georgetown-Round Rock area median home prices were $199,700. By January 2015, that median hovered at $287,000. At the end of 2016, university real estate analysts found the home mid-price point at $332,000.” Of course, in my neck of the woods, $332,000 will buy you a 2,500 square foot house, while in San Francisco, you’d be lucky to find a 500 square foot condo…
  • “An IGS-UC Berkeley poll shows that 74 percent of Californians want sanctuary cities ended; 65 percent of Hispanics, 70 percent of independents, 73 percent of Democrats and 82 percent of Republicans.”
  • Of the top 20 cities for illegal aliens, five (Los Angeles, San Francisco, San Jose, San Diego and Riverside) are in California, while three (Houston, Austin and Dallas/Ft. Worth) are in Texas. I’m actually a bit surprised to see that San Antonio isn’t on that list, while Seattle and Boston are. “American citizens who paid into the system don’t receive benefits like long-term medical care because — in part — we’re all subsidizing aliens.”
  • California pays $25.3 billion in illegal alien benefits, or $2,370 per household. (Hat tip: Director Blue.)
  • By contrast, Texas pays $12.1 billion in illegal alien benefits, or $1,187 per household. (IBID)
  • “In testimony provided before the California Senate’s Public Safety Committee, Senate President Pro Tem Kevin De Leon (D-Los Angeles) decided to admit that “half of his family” is residing in the United States illegally and with the possession of falsified Social Security Cards and green cards.”
  • “California spent on high-speed rail and illegal immigrants, but ignored Oroville Dam.”
  • Pensions are breaking budgets across San Diego. (Hat tip: Pension Tsunami.)
  • “Despite California having some of the best recreation spots in the world, we have systematically reduced our business in California by 50%, and I have a moratorium in place on accepting new business (I won’t even look at RFP’s and proposals to avoid being tempted.)”
  • That same blogger on why his company pulled out of Ventura, California. Like this:

    It took years in Ventura County to make even the simplest modifications to the campground we ran. For example, it took 7 separate permits from the County (each requiring a substantial payment) just to remove a wooden deck that the County inspector had condemned. In order to allow us to temporarily park a small concession trailer in the parking lot, we had to (among other steps) take a soil sample of the dirt under the asphalt of the parking lot. It took 3 years to permit a simple 500 gallon fuel tank with CARB and the County equivalent. The entire campground desperately needed a major renovation but the smallest change would have triggered millions of dollars of new facility requirements from the County that we simply could not afford.

    And this:

    A local attorney held regular evening meetings with my employees to brainstorm new ways the could sue our company under arcane California law. For example, we went through three iterations of rules and procedures trying to comply with California break law and changing “safe” harbors supposedly provided by California court decisions. We only successfully stopped the suits by implementing a fingerprint timekeeping system and making it an automatic termination offense to work through lunch. This operation has about 25 employees vs. 400 for the rest of the company. 100% of our lawsuits from employees over our entire 10-year history came from this one site. At first we thought it was a manager issue, so we kept sending in our best managers from around the country to run the place, but the suits just continued.

  • California has some of the highest taxes in the nation, but can’t pay for road maintenance:

    Texas has no state income tax, yet excellent highways and schools that perform above average, way above California’s bottom-dwellers. Yet both states have similar demographics. For example, in the 2010 U.S. Census, Texas was 37% Hispanic, California 37.6%.

    Texas is a First World state with no state income tax that enjoys great roads and schools. California is a Third World state restrained from getting worse only by its umbilical-cord attachment to the other 49 states, a cord the Calexit movement wants to cut, but won’t get to.

    California is Venezuela on the Pacific, a Third World state and wannabe Third World country; a place with great natural beauty, talented people, natural resources – and a government run by oligarchs and functionaries who treat the rest of us as peons.

    (Hat tip: Pension Tsunami.)

  • “Texas Ends 2016 with 210,200 Jobs Added Over the Year.”
  • All Houston does economically is win.

    The Houston metropolitan area’s population now stands at 6.6 million with the city itself a shade under 2.3 million. At its current rate of growth, Houston could replace Chicago as the nation’s third-largest city by 2030.

    Why would anyone move to Houston? Start with the economic record.

    Since 2000, no major metro region in America except for archrival Dallas-Fort Worth has created more jobs and attracted more people. Houston’s job base has expanded 36.5%; in comparison, New York employment is up 16.6%, the Bay Area 11.8%, and Chicago a measly 5.1%. Since 2010 alone, a half million jobs have been added.

    Some like Paul Krugman have dismissed Texas’ economic expansion, much of it concentrated in its largest cities, as primarily involving low-wage jobs, but employment in the Houston area’s professional and service sector, the largest source of high-wage jobs, has grown 48% since 2000, a rate almost twice that of the San Francisco region, two and half times that of New York or Chicago, and more than four times Los Angeles. In terms of STEM jobs the Bay Area has done slightly better, but Houston, with 22% job growth in STEM fields since 2001, has easily surpassed New York (2%), Los Angeles (flat) and Chicago (-3%).

    More important still, Houston, like other Texas cities, has done well in creating middle-class jobs, those paying between 80% and 200% of the median wage. Since 2001 Houston has boosted its middle-class employment by 26% compared to a 6% expansion nationally, according to the forecasting firm EMSI. This easily surpasses the record for all the cities preferred by our media and financial hegemons, including Washington (11%) and San Francisco (6%), and it’s far ahead of Los Angeles (4%), New York (3%) and Chicago, which lost 3% of its middle-class employment.

    (Hat tip: Pension Tsunami.)

  • Texas conservative budget overview vs. the 2018-2019 proposed budget.
  • On the same subject: how to reduce the footprint of Texas government.
  • “Berkeley funds the Division of Equity and Inclusion with a cool $20 million annually and staffs it with 150 full-time functionaries: it takes that much money and personnel to drum into students’ heads how horribly Berkeley treats its “othered” students.”
  • New LA housing initiative to undo previous housing initiative. Frankly all of them sound like market-distorting initiatives guaranteed to backfire…
  • “California’s bullet train could cost taxpayers 50% more than estimated — as much as $3.6 billion more. And that’s just for the first 118 miles through the Central Valley, which was supposed to be the easiest part of the route between Los Angeles and San Francisco.”
  • “For the past five months, BART has been staffing its yet-to-open Warm Springs Station full time with five $73,609-a-year station agents and an $89,806-a-year train dispatch supervisor — even though no trains will be running there for at least another two months.” (Hat tip: Pension Tsunami.)
  • “After studying “tens of thousands of restaurants in the San Francisco area,” researchers Michael Luca of Harvard Business School and Dara Lee Luca of Mathematica Policy Research found that many lower rated restaurants have a unique way of dealing with minimum wage hikes: they simply go out of business.”
  • Meet Gordon, the robot barista. How’s that $15 an hour minimum wage working out for you, San Francisco?
  • “Nestle USA announced today that it is moving 300 technical, production and supply chain jobs to the Solon [Ohio] plant as part of the company’s plan to relocate its headquarters to Arlington, Virginia, from Glendale, California.”
  • Auto dealer AutoAlert is moving it’s headquarters from Irvine, California to Kansas City.
  • Peter Thiel to run for governor of California?
  • The Oakland Raiders may not be moving to Las Vegas after all, because billionaire Sheldon Adelson backed out of the stadium deal, accusing Raider owner Mark Davis of trying to screw him.
  • Now there’s talk the Raiders may rexamine moving to San Antonio.
  • Or even Dan Diego.
  • Lawsuits are flying over the Dallas Police and Fire pension fund debacle. (Hat tip: Pension Tsunami.)
  • Texas vs. California Update for January 12, 2017

    Thursday, January 12th, 2017

    It’s been a long time since I compiled one of these, so this is going to be monstrously large. Also, just as I was finishing this up, the San Diego Chargers announced they were moving to Los Angeles. Hell, LA has proven in the past it’s incapable of adequately supporting one NFL franchise, much less two…

  • When you look at the full recession records, not just the last few years, Texas is still kicking California’s ass. “Over that time frame, Texas has grown more than THREE TIMES FASTER than California. Actually 3.4 times faster (Texas grew at a 4.1% annual rate vs. 1.2% for California).” (Hat tip: Pension Tsunami.)
  • “A just released study calculates the total state and local government debt in California as of June 30, 2015, at over $1.3 trillion.” (Hat tip: Pension Tsunami.)
  • California faces its first budget deficit since 2012. Or at least it’s first official deficit since then. (Hat tip: Pension Tsunami.)
  • A second judge, this one on the California First District Court of Appeal, rules that public pensions may be modified.
  • The California Democratic Party has gone hard left, and it’s taking the rest of the state with it:

    Increasingly, inside the party, it’s been the furthest Left candidates that win. In the Democrat-only Sanchez vs. Harris race for the U.S. Senate, the more progressive candidate triumphed easily, with a more moderate Latina from Southern California decimated by the better funded lock-step, glamorous tool of the San Francisco gentry Left.

    Gradually, the key swing group — the “business Democrats” — are being decimated, hounded by ultra-green San Francisco billionaire Tom Steyer and his minions. No restraint is being imposed on Gov. Brown’s increasingly obsessive climate change agenda, or on the public employee unions, whose pensions could sink the state’s finances, particularly in a downturn.

    The interior parts of California already rank near the bottom, along with Los Angeles, in terms of standard of living — by incomes, as opposed to costs — in the nation. Compared to the Bay Area, which now rules the state, the more blue-collar, Latino and African American interior, as well as much of Los Angeles, account for six of the 15 worst areas in terms of living standard out of 106 metropolitan areas, according to a recent report by Center for Opportunity Urbanism demographer Wendell Cox.

    Given the political trends here, it’s hard to see how things could get much better. The fact that most new jobs in Southern California are in lower-paying occupations is hardly promising. In contrast, generally better-paying jobs in manufacturing, home-building and warehousing face ever-growing regulatory strangulation.

    Sadly, the ascendant Latino political leadership seems determined to accelerate this process. In both Riverside and San Bernardino, pro-business candidates, including San Bernardino Democrat Cheryl Brown, lost to green-backed Latino progressives.

    For whatever reason, Latino voters and their elected officials fail to recognize that the increasingly harsh climate change agenda represents a mortal threat to their own prospects for upward mobility. Before this week’s election, California policy makers could look forward to Washington imposing such policies on the rest of the country; now our competitor regions — including Utah, Arizona, Nevada and Texas — can double down on growth. Expect to see more migration of ambitious Californians, particularly Latinos, to these areas.

    California is on the road to a bifurcated, almost feudal, society, divided by geography, race and class. As is clear from the most recent Internal Revenue Service data, it’s not just the poor and ill-educated, as Brown apologists suggest, but, rather, primarily young families and the middle-aged, who are leaving. What will be left is a state dominated by a growing, but relatively small, upper class, many of them boomers; young singles and a massive, growing, increasingly marginalized “precariat” of low wage, often occasional, workers.

  • Sanctuary cities might drive California into bankruptcy:

    California is about to face the music as Donald Trump becomes 45th President of the United States. Their Sanctuary Cities violate federal law and after Jeff Sessions is confirmed as Attorney General (and he will be), they are going to either have to knock that off or have funding to their law enforcement and their government stripped away. Sessions can’t wait and I have to say, I will enjoy watching this showdown. Los Angeles Mayor Eric Garcetti said that Trump pulling 37% of federal funding for their governments would cause chaos and upheaval. Yes, it will… it will also cause California to go absolutely toes up bankrupt.

    It’s simple. They can either follow the rule of law, or the free flow of money from DC gets cut off. In 2015, that amounted to about $93.6 billion. That’s a lot of money to turn away because you insist on not following the law. Let’s see how long that lasts. I love the thought of this. It’s about time Sanctuary Cities were stopped and this is an excellent way to do it. New York, Chicago and DC will all face the same choice by the way. Imagine the meltdown. Good times.

  • “California paid LESS to the feds per capita than Texas. California got MORE back per capita from the feds than Texas.” Freeloaders love the Blue State model… (Hat tip: Pension Tsunami.)
  • Another way of looking at California’s economy:

    California has 39 million people — 43% larger than the 2nd largest state (Texas). Such GDP comparisons don’t tell us much in terms of the PROSPERITY of a nation. Or a state.

    The proper comparison is PER CAPITA GDP. Using that more meaningful figure, CA is the 10th most prosperous state.

    But an even MORE accurate comparison is to take the per capital GDP and adjust it for COL. Because of California’s high taxes, crazy utility laws, stifling regulations (paid by consumers) and sky-high housing costs, CA in 2014 ranked WAY down in 37th place. Only 13 states were worse.

    (Hat tip: Pension Tsunami.)

  • Same as it ever was:

    Governor Jerry Brown announced today that the budget was $1.4 billion in deficit. At the end of last year, the state announced that it was giving state employees a raise which would cost taxpayers over $2 billion over the next four years. Do you think there is a connection?

    A story ran locally in Southern California saying that over 105 employees in Santa Monica, a medium sized city, earn over $300,000 a year. The Governor of the state of California earns $174,000 per year. If you do the research, you will find that there are over 200 state employees that earn more than that

    When I was deciding what I wanted to do in my younger years, my mother told me I should go to work for the government, good benefits she said. I knew I would be bored and would die young if I became a government drone. My little sister listened to her. Today, my little sister is retired on a great government pension, I still fight to pay my taxes. Given the pay that even the lowest government official receives, my mother was right.

    Our government pension system is over $500 billion upside down. Retired state employee health benefits add an additional $300 billion or more to that deficit. The system is out of control. Pay and benefits to government employees at state and local levels is incomprehensible, and the government leaders still come to you and I and ask us to foot the bill for their indulgences.

    What is even more evil about the system is that government unions, led by thugs who force people to pay union dues for the privilege of having a government job, take the money from the government employees and put it into the political system to pay for the campaigns of the Governor, statewide elected officials, legislators and city councils with whom these unions then negotiate for the out-of-control pay and benefits. If anyone tries to limit them, as I once tried by tying everybody’s salaries to the Governor’s salary, they are marked for political defeat. And the system perpetuates itself, taxes to employees to unions to politicians, as it did in the Soviet Union, until the whole system collapses.

    (Hat tip: Pension Tsunami.)

  • California has stopped growing:

    Driven by rising out-migration and falling birth rates, California’s population growth has stalled, leading analysts to consider a possible forecast of a so-called “no-growth” period in the future.

    Although Americans nationwide have been flooding south and west for years, the Golden State has become an exception. Nearly 62 percent of Americans lived in the two regions, Justin Fox observed from Census figures. “That’s up from 60.4 percent in the 2010 census, 58.1 percent in 2000, 55.6 percent in 1990 — and 44 percent in 1950. The big anomaly is California, which is very much in the West, yet has lost an estimated 383,344 residents to other states since 2010.”

    “The state’s birth rate declined to 12.42 births per 1,000 population in 2016 — the lowest in California history,” the San Jose Mercury News noted, citing a state Department of Finance report. “In 2010, the last time figures were compiled, the birth rate was 13.69 per 1,000 population.”

  • California Democrats legalize child prostitution.” (Hat tip: Ed Driscoll at Instapundit.)
  • Some are objecting to the term “legalization”.
  • California Democrats vote to line Eric Holder’s pockets:

    Last week California’s progressive lawmakers announced that they’ve put former Attorney General Eric Holder, now a Covington & Burling partner, on retainer as the state’s outside counsel. “This is potentially the legal fight of a generation, and with Eric Holder we’ve added a world-class lawyer,’’ said Senate majority leader Kevin de León.

    This is odd. Typically states hire outside counsel for help with specific cases, but the legislature is paying Mr. Holder $25,000 a month for three months under the initial contract, apparently for 40 hours a month and the privilege of his attention if something comes up.

  • At least one California assemblyman thinks that the Holder deal is illegal. “California courts have interpreted the civil service mandate of article VII of forbidding private contracting for services that are of a kind that persons selected through civil service could perform ‘adequately and competently.'”
  • In California, robots are replacing people in warehouse work. The minimum wage is mentioned, but only in passing.
  • California is the state third most likely to enter a death spiral in a recession. (Hat tip: Director Blue.)
  • “San Diego County Board of Supervisors voted Tuesday to increase their own salaries by more than $19,000 a year, despite public comment from dozens of opponents.”
  • “California state firefighters will receive substantial raises of up to 13.8 percent this year, according to newly released details from a proposed contract that their union negotiated just before Christmas.” Just the thing a state with a budget deficit needs…
  • “The evidence is clear that standards of living are substantially higher in Texas than in California, which has a model of excessive government.” More: “During the last decade, economic growth in the real private sector has increased by 29 percent in Texas compared with only 14 percent in California. Job creation increased by 1.2 million in California compared with 1.7 million in Texas, which has a labor force two-thirds of that in California. Remarkably, Texas’ job creation was roughly one-third of total civilian employment increases nationwide.”
  • Texas ranked third nationally in economic freedom for the sixth consecutive year. California ranked 49th, just ahead of New York.
  • California Democrats vow to go all-out to keep illegal aliens from being deported. (Hat tip: Instapundit.)
  • CalPERs plans to sell $15 billion worth of equities over the next two years. Also: “CalPERS’ current portfolio is pegged to a 7.5% return and a 13% volatility rate” even though the most recent returns were “a 0.6% return for the fiscal year ended June 30 and a 2.4% return in fiscal 2015.”
  • But the shift from Fantasyland to Reality has been a slow and painful one for CalPERS:

    Overseers of the nation’s largest pension trust fund, the California Public Employees Retirement System (CalPERS), last month reduced – albeit reluctantly – its projection of future earnings by a half-percentage point.

    With earnings on investments the last two years barely exceeding zero, CalPERS has been compelled to sell assets to make its pension payments – which far outstrip contributions from state and local governments and their employees.

    Reducing the “discount rate” to 7 percent will force employers, and perhaps employees, to kick billions of more dollars into the system to slow the growth of CalPERS’ “unfunded liabilities,” as the $150-plus billion debt is termed.

    However, the extra contributions generated by lowering the discount rate will not erase that debt, which is likely to keep growing if CalPERS’ investment earnings continue to fall short, as many economists expect. In fact, CalPERS’ own advisers see a prolonged period of relatively low earnings, and say the system shouldn’t count on more than 6.2 percent.

    Rationally, the discount rate should have been lowered by at least another full percentage point. But CalPERS has already increased its mandatory contributions by 50 percent to make up for investment losses during the Great Recession and other factors, and cutting the discount rate to 6 percent would probably mean bankruptcy for a number of local governments, especially some cities.

    (Hat tip: Pension Tsunami.)

  • And CalPERs needs to do a lot more:

    This is why the CalPERS board must do far more — starting with, on a large scale, finally embracing pension reforms and, on a smaller scale, shuttering an over-the-top corner of the CalPERS website that says it’s a myth that pension costs are crowding out “government services like police and libraries.”

    It’s no myth. The Los Angeles Times reported last month that pensions and retirement health benefits now consume 20 percent of revenue in Los Angeles and Oakland and a stunning 28 percent in San Jose. While the state government is in better shape than most local governments, it’s beginning to feel the strain as well. On Wednesday, Bloomberg reported that beginning in April, the state will increase vehicle registration fees from $46 to $56 to help cover the soaring cost of pensions for California Highway Patrol officers. In 2000, the state had to pay about one-eighth of annual CHP pension costs. Now it must pay about half.

  • “Home values in San Francisco have doubled in a matter of four years. Since 2012 the typical San Francisco home went from $600,000 to $1,200,000. The Bay Area is under a tech based hypnotic spell and foreign money just can’t get enough of million dollar crap shacks in San Francisco. As we all know trees do not grow to the sky with unlimited potential and at a certain point the laws of reality have to hit. Only 11 percent of households in San Francisco can actually afford to purchase the typical $1.2 million crap shack.”
  • San Francisco welcomes immigrants…unless they threaten to move next door. (Hat tip: Ace of Spades HQ.)
  • “New housing data show foreclosure activity in California dropped to an 11-year low in 2016. But the state is still working through a backlog of homes purchased with bad loans during the last housing bubble.”
  • How America’s restaurant bubble is about to burst. Actually, the piece focuses mainly on the impossibility of running a profitable fine dining restaurant in San Francisco and other similarly expensive locales. (Hat tip: Zero Hedge.)
  • “How the University of California exploited a visa loophole to move tech jobs to India.”
  • The Census bureau says that Texas continued to grow in 2016. “Another big gainer was Texas, whose addition of about 433,000 people accounted for 19% of the country’s growth. The state, with 27.9 million people, grew from a relatively strong flow of immigrants and people relocating there from other states.”
  • Texas was second relocation destination choice in 2015:

    Texas experienced a net gain of out-of-state residents in 2015, with 107,689 more people moving to Texas than Texas residents moving out of state. This is a 4 percent increase in the net gain of Texas residents from 2014 (103,465 residents).

    The total number of residents moving to Texas from out of state in 2015 increased 2.8 percent year-over-year to 553,032 incoming residents. The highest number of new Texans came from California (65,546), followed by Florida (33,670), Louisiana (31,044), New York (26,287) and Oklahoma (25,555).

    Texas once again ranked third in the nation for number of residents moving out of state (445,343) in 2015. The most popular out-of-state relocation destinations for Texans were California (41,713), Florida (29,706), Oklahoma (28,642), Colorado (25,268), and Louisiana (19,863).

  • Arizona and Florida managed to dethrone Texas for the relocation top spot for the first time in a dozen years.
  • Why is Austin housing more expensive comapred to other Texas cities? “The reasons vary, but boil down to Austin’s relative unwillingness–thanks to NIMBYism and regulations–to build more housing.”
  • It doesn’t help that Austin is experiencing a net influx of 3,000 Californians a year. Seems like more…
  • California ban on modern sporting rifles went into effect January 1. (Hat tip: Director Blue.)
  • “Police in Kern County, California, have killed more people per capita than in any other American county in 2015.” Caveat the first: The Guardian. Caveat the second: Thanks ever so much for that full-frame background video designed to bring by computer to a screeching halt, Guardian
  • How Marfa, Texas turned itself into an art colony.
  • Students at California law schools are doing horribly on the bar exam. “Law schools are admitting less and less qualified students in an effort to bolster their bottom lines. And why do their bottom lines need to be bolstered? Because they have too many faculty relative to student demand for the schools, and are either reluctant or unable to reduce the size of the faculty to “right size” the law school relative to present demand for the JD.” (Hat tip: Instapundit.)
  • Maybe they should start calling it “North American Apparel“:

    Canadian apparel maker Gildan Activewear Inc. has won a bankruptcy auction for U.S. fashion retailer American Apparel LLC (curxq) after raising its offer to around $88 million, a person familiar with the matter said Monday.

    Gildan’s takeover marks the end of an era for the iconic Los Angeles-based company, which was founded in 1998 by an eccentric Canadian university drop-out and grew to become a part of U.S. popular culture thanks to its racy advertising.

    Gildan will not take any of American Apparel’s 110 stores, but will own its brand and assume some of its manufacturing operations, the source said. The deal is subject to a bankruptcy judge approving it on Thursday.

  • State of California: You can’t mention actresses ages, because Reasons. IMDB: Free speech. Bite me.
  • And if you hadn’t seen them already, two previous BattleSwarm stories that touch on the Texas vs. California issue:

  • Interview with TPPF’s James Quintero on the Texas Municipal Pension Debt Crisis
  • The Texas 85th legislative session opens with budget tightening on the agenda.
  • Texas vs. California Update for September 14, 2016

    Wednesday, September 14th, 2016

    Time for another Texas vs. California update:

  • Vance Ginn makes the case that Texas is still kicking California’s ass:

    After descending into a deep valley during the recession, California’s economy has recently grown at a faster rate than in Texas, where the drop in oil prices and higher value of the dollar have negatively affected the mining and manufacturing sectors. However, during the last decade, the productive, real private sector growth has increased by 13.6 percent in California compared with a robust 29.1 percent in Texas.

    This growth translates into output per person in Texas increasing almost four times more than in California in that period, meaning economic output has far outpaced population growth.

    Although contemporary economic growth in California has led to a higher annual job creation rate than in Texas since April 2015, this only tells part of the story.

    Since December 2007 when the last national recession started, total civilian employment increased in California by 1.2 million while it increased by 1.7 million in Texas, with a labor force two-thirds the size of California’s. This increase in employment in Texas constitutes about one-third of all jobs created nationwide — truly remarkable given recent headwinds!

    This phenomenal job creation contributed to Texas’ unemployment rate (4.6 percent) being at or below California’s rate (5.5 percent) for 121 straight months, or since July 2006. But the official unemployment rate only accounts for those actually looking for work, a better gauge of labor force health would be the share of the population employed, which has been higher in Texas than in California since at least 2000.

    More economic output and job creation over time in Texas has contributed to less poverty. The Bureau of Labor Statistics’ supplemental poverty measure, which accounts for the local cost of living, shows that Texas’ rate matches the national average while California has the nation’s highest poverty rate

    Income inequality has also been higher in California than in Texas for years. For example, the average of total income held by the top 10 percent of income earners from 2000 to 2012 was 49.9 percent in California compared with 48.8 percent in Texas.

    The results are pretty clear that California’s progressive policies of having the highest marginal personal income tax rate, cumbersome regulations, huge unfunded pension obligations, an out of control lawsuit environment, and other policies reduce economic opportunity.

    (Hat tip: Pension Tsunami.)

  • High earners are leaving blue states like California for red states like Texas:

    For generations, the Golden State developed a reputation as the ultimate destination of choice for millions of Americans. No longer. Since 2000 the state has lost 1.75 million net domestic migrants, according to Census Bureau estimates. And even amid an economic recovery, the pattern of outmigration continued in 2014, with a loss of 57,900 people and an attraction ratio of 88.5, placing the Golden State 13th from the bottom, well behind longtime people exporters Ohio, Indiana, Kentucky and Louisiana. California was a net loser of domestic migrants in all age categories.

    Snip.

    Much of the discussion about millennial migration tends to focus on high-cost, dense urban regions such as those that dominate New York, Massachusetts and, of course, California. Yet the IRS data tells us a very different story about migrants aged 26 to 34. Here it’s Texas in the lead, and by a wide margin, followed by Oregon, Colorado, Washington, Nevada, North Dakota, South Carolina, Maine, Florida and New Hampshire. Once again New York and Illinois stand out as the biggest losers in this age category.

    Perhaps more important for the immediate future may be the migration of people at the peak of their careers, those aged 35 to 54. These are also the age cohorts most likely to be raising children. The top four are the same in both cohorts. Among the 35 to 44 age group, it’s Texas, followed by Florida, South Carolina and North Dakota. Among the 45 to 54 cohort, Texas, followed by South Carolina, Florida and North Dakota.

  • California just raised your food costs.
  • And agricultural producers are not happy:

    The Governor signed this ag overtime bill in the same year that minimum wage legislation was also passed that will take California to the highest minimum wage as well as legislation forcing California to adopt additional greenhouse gas regulations for businesses in California.

    California is the only state in the country subject to such regulations. Today’s signing occurred despite numerous requests by the agricultural industry to meet with the Governor to discuss our concerns. The message is clear. California simply doesn’t care.

  • Ca;ifornia companies have a hard time attracting workers:
  • More than two-thirds (70 percent) of organizations in California indicated that they have had difficulty recruiting for full-time regular positions in the last 12 months, similar to 68 percent nationally.
  • California organizations were more likely than organizations nationally to report competition from other employers (56 percent), qualified candidates rejecting compensation packages (28 percent), qualified candidates not being able to move to their local area (21 percent), or a relocation or a relocation package not being competitive or not being offered (12 percent) as top reasons for hiring difficulty.
  • Why California can’t build more housing. “Labor unions—which ostensibly stand for working class interests—will not stand for new construction unless it is accompanied by carve-outs and cronyist regulations that artificially boost their compensation.” (Hat tip: Instapundit.)
  • Stop me if you’ve heard this one before: “California’s unfunded pension debts may be larger than acknowledged.” (Hat tip: Pension Tsunami.)
  • “The biggest problem faced by the State of California is not ‘climate change’ or ‘poverty it is the overreaching power of California government itself, namely the California Legislature and Administration, and the threats that this Democrat establishment poses to California’s future, particularly with regard to the economy and individual liberty. California Democrats are celebrating the passage of new climate change legislation that provides California government with broad, sweeping new powers to drastically curb greenhouse gas reductions without regard to economic impact or the basic rights of businesses and individuals.” (Hat tip: Pension Tsunami.)
  • Palo Alto decides that they hate, hate, hate that golden goose.
  • Maybe that’s why some observers are telling people “If You Own A Home In Palo Alto, CA; Sell It Now.” As the median price of homes has actually started dropping, though from admittedly already insane heights…
  • “Case Study: How Politicians Motivate Companies to Leave California.”
  • Orange County clerk took bribes to make charges disappear.
  • Corrupt Oakland police sentenced. There are all sorts of real winners in this story…
  • LAX Police Assistant Chief Resigns Amid Corruption Allegations.”
  • University of California hires India-based IT outsourcer, lays off tech workers. “The layoffs will happen at the end of February, but before the final day arrives the IT employees expect to train foreign replacements from India-based IT services firm HCL. The firm is working under a university contract valued at $50 million over five years.” This might be a good time to throw in a “How’s that $15 minimum wage working out for you, San Francisco,” but there’s another factor at work: “Joe Bengfort, the CIO for the UCSF campus, said the campus is facing ‘difficult circumstances’ because of declining reimbursement and the impact of the Affordable Healthcare Act, which has increased the volume of patients but limits reimbursement to around 55 cents on the dollar, he said.” So San Franciscans IT workers are losing their jobs thanks to ObamaCare.
  • “Texas has proven it’s possible to have both much lower crime and a lower rate of imprisonment. Indeed, Texas’ FBI index crime rate, which accounts for both violent crime and property crime, has fallen more sharply than it has nationally, posting a 29 percent drop from 2005 to 2014, the latest full year for which official data is available.”
  • “It turns out that the average property tax bill required to support BART’s proposed $3.5 billion bond measure on the November ballot could be as much as four times what the transit agency claimed…That’s because legal language in Measure RR allows BART to issue bonds at up to the state limit of 12 percent interest.” 12%? With 30 year U.S. Treasuries running under 2%? The fact they think they may have to go that high to attract investors suggests how worried bond traders are about the future of California’s economy…
  • Some are less than enthused about BART’s bond proposal:

    BART officials want voters to trust them with another $3.5 billion of taxpayer money. But they’ve done nothing to earn that trust.

    Instead, they have recklessly spent what they have, grossly understated how much their ballot proposal would raise property tax bills and devised plans to use money from the measure, intended for capital projects, to indirectly cover inflated labor costs.

    Voters in Alameda County, Contra Costa and San Francisco should say no — hell no. They should reject Measure RR on the Nov. 8 ballot.

    Despite the problems facing the transit agency, it makes no sense to approve five decades of extra taxes when Measure RR lacks a logical budget, a timeline for service improvements and provisions ensuring taxpayers and riders get what they’re promised.

    The measure would authorize the district to borrow $3.5 billion through bond sales as part of a larger plan to upgrade BART’s infrastructure. The ballot wording conveniently omits that the district would tax property owners for 48 years to pay off the debt.

    (Hat tip: Pension Tsunami.)

  • Speaking of California bonds: Proposition 53 explained.
  • California’s legislature passes extension of sexual assault statue of limitations mainly over Bill Cosby. Combine this with the trend of colleges redefining rape to “any sex a woman later regrets,” and suddenly the state has the ability to prosecute anyone who ever had sex in California…
  • Leprosy Scare in California Elementary School. “There are approximately 6,500 cases of leprosy in the United States, and 90 percent of the cases are immigrants from countries where leprosy is endemic.With the increase in illegal immigrants and refugees in recent years, diseases thought to be eradicated in this country — like tuberculosis, polio, measles and leprosy — have unfortunately reemerged in the United States.” (Hat tip: Ed Driscoll at Instapundit.)
  • Image Comics to move from Berkeley to Portland.
  • Cow Fart Regulations Approved By California’s Legislature.” No, not an Onion piece.
  • Follow-up: Pacific Sunwear exits bankruptcy.
  • Texas vs. California Update for July 25, 2016

    Monday, July 25th, 2016

    Enjoy another Texas vs. California roundup:

  • June marked the 114th month that Texas was at or below the national unemployment average. Texas also created 246,600 jobs in the service sector.
  • Once again Texas ranks as the best state for business, and California ranks worst. (Hat tip: Fox and Hounds via Pension Tsunami.)
  • Elites watch while California crumbles:

    The basket of California state taxes — sales, income, and gasoline — rates among the highest in the U.S. Yet California roads and K-12 education rank near the bottom.

    California depends on a tiny elite class for about half of its income-tax revenue. Yet many of these wealthy taxpayers are fleeing the 40-million-person state, angry over paying 12 percent of their income for lousy public services.

    Excessive state regulations and expanding government, massive illegal immigration from impoverished nations, and the rise of unimaginable wealth in the tech industry and coastal retirement communities created two antithetical Californias.

    One is an elite, out-of-touch caste along the fashionable Pacific Ocean corridor that runs the state and has the money to escape the real-life consequences of its own unworkable agendas.

    The other is a huge underclass in central, rural, and foothill California that cannot flee to the coast and suffers the bulk of the fallout from Byzantine state regulations, poor schools, and the failure to assimilate recent immigrants from some of the poorest areas in the world.

    The result is Connecticut and Alabama combined in one state. A house in Menlo Park may sell for more than $1,000 a square foot. In Madera, three hours away, the cost is about one-tenth of that.

  • CalPERS suffers $30.8 billion annual loss. “CalPERS has notoriously minimized the annual pension contribution for its 3,007 government entities by fantasizing that its superior investments expertise will allow its investments to compound every year without loss for the next three decades at an annual rate of 7.5 percent.” (Hat tip: Pension Tsunami.)
  • CalSTRS isn’t doing much better: “The California State Teachers’ Retirement System [earned] 1.4% for the fiscal year ended June 30.” (Hat tip: Instapundit.)
  • Record tax revenues, yet somehow California is still broke:

    California taxpayers are getting taken to the cleaners, but most of them are completely in the dark about how and why.

    I will pose a quick question: Does it seem strange that California has recorded record revenue increases, yet we also see a record number of tax increases and bond issuances on the ballot?

    In other words, the state’s tax system is collecting massive amounts of revenues, record amounts, yet politicians are still asking for a record number of new tax increases. For taxpayer advocates, it just doesn’t seem fair and seems very strange at first glance as to how this can even occur.

    The truth of the matter is that California’s system of public finance is a complete train wreck and is set up such that no amount of tax revenues collected will ever be enough to satisfy “spending needs.” The so-called baseline expenditure increases are on autopilot and deficit projections are generated despite record revenue increases, a trend projected in the Governor’s May Revise.

    (Hat tip: Pension Tsunami.)

  • “As we roll toward the November ballot, I’m reminded of H.L. Mencken’s quip that “Democracy is the theory that the common people know what they want, and deserve to get it good and hard.” We always get it “good and hard” in California given the ever-expanding one-party rule. The worse it gets, the more voters from the GOP high-tail it to Nevada and Texas — and the worse it gets as political competition evaporates. It’s the political equivalent of a death spiral.” (Hat tip: Pension Tsunami.)
  • Lots of tax hikes are on the California ballot this November, for a variety of different ostensible reasons, but actually for a single reason: Pensions. (Hat tip: Pension Tsunami.)
  • Beaumont, California: “Seven former officials were arrested and charged with stealing nearly $43 million during the city’s development boom. Now, residents are learning that the town’s problems go much deeper than the criminal case.” (Hat tip: Gregory Benford’s Facebook page.)
  • “California’s high-speed rail project increasingly looks like an expensive social science experiment to test just how long interest groups can keep money flowing to a doomed endeavor before elected officials finally decide to cancel it.” $68 billion and rising. (Hat tip: Ace of Spades HQ.)
  • Teachers union writes a $10-million check for income tax ballot measure.”
  • “Oakland police officer Malcolm Miller more than quadrupled his $107,627 salary to $489,662 with overtime, benefits and other specialty pays last year — making him Oakland’s highest paid employee for the third year in a row.” (Hat tip: Pension Tsunami.)
  • “C.C. Myers Inc., one of California’s highest-profile freeway builders, has filed for bankruptcy.”
  • Also filing for bankruptcy: California-based developer Criswell-Radovan, which owns the Tahoe Cal Neva casino Frank Sinatra used to own.
  • One tiny bit of dubious good news for the Bankruptcy Court for the Central District of California: Now they’re only the second in bankruptcy filings in the nation at 45,000, having been overtaken by the Bankruptcy Court for the Northern District of Illinois at 47,535 filings.
  • Nissan and Toyota battle over Texas. “Both automakers are zeroing in on Texas as a key growth opportunity.”
  • California’s Democratic State Controller Betty Yee fined $2,082 for violations during her 2014 campaign.
  • Rent a security robot for $7 an hour. How many human security guards will be left at California’s $15 an hour?
  • Old and Busted: Participation trophies. The New Hotness: California’s Democratic officials giving awards to their own family members.
  • “Judge throws out ex-L.A. County Sheriff Lee Baca’s plea deal, saying six months in prison not enough.” (Hat tip: Dwight.)
  • Texas vs. California Update for June 28, 2016

    Tuesday, June 28th, 2016

    Welcome to another Texas vs. California update!

  • California’s skyrocketing housing costs, taxes prompt exodus of residents.” “During the 12 months ending June 30, the number of people leaving California for another state exceeded by 61,100 the number who moved here from elsewhere in the U.S.” Plus this: “The majority of the people we are seeing are moving to states that don’t have state income taxes.” And this “My husband’s salary would be in the six figures, but six figures is not enough to cover the rent, day care (and) food prices.” (Hat tip: Pension Tsunami.)
  • The middle class can no longer afford to live in the Bay Area.
  • “Orange County’s public city employees earned $144,817 on average last year.” (Hat tip: Pension Tsunami.)
  • In a completely unrelated story, lavish pension hikes have resulted in exploding levels of Orange County debt. (Hat tip: Pension Tsunami.)
  • “City employees working full-time in Long Beach earned an average of $128,731 in total compensation last year.” (Hat tip: Pension Tsunami.)
  • “A survey of 45 cities in Riverside and San Bernardino counties shows the average full-time city worker received $127,730 in pay and benefits last year.” (Hat tip: Pension Tsunami.)
  • On paper, Nevada County, California, is technically insolvent (which is the best kind of insolvent.) (Hat tip: Pension Tsunami.)
  • As good as Texas is doing compared to California’s profligacy, the people at the Texas Public Policy Foundation think the budget is still growing way too fast.
  • “Jacobs Engineering Group, one of the world’s largest engineering companies, is preparing to move employees from its Pasadena [CA] headquarters to Dallas, becoming the latest major corporation to relocate significant operations from California to Texas.”
  • “A California-based orthopedic goods manufacturer and distributor has decided to move its Ohio-based distribution hub to Dallas/Fort Worth International Airport, which will give the company a place to significantly expand operations and possibly relocate its West Coast headquarters. The company, Santa Paula, California-based Hely & Weber, has signed a lease totaling nearly 40,000 square feet of space at 755 Regent Blvd. in Dallas/Fort Worth International Airport.”
  • Still more companies leaving California. Plus why the “Bernie Sanders effect” will result in a veto-proof majority for Democrats in the California legislature. (Hat tip: Pension Tsunami.)
  • Bankrupt San Bernardino, union fight over settlement payments.” Clip and save this headline, as you’ll be able to use it again and again over the coming years…
  • Marin County pension reformer launches GoFundMe campaign to sue the county over pension increases. Though his $198,000 request strikes me as excessively optimistic…
  • Texas scores three of the top five cities (Houston, Austin, San Antonio) for U-Haul destinations. (Hat tip: Ted Cruz on Facebook.)
  • California Democrats and Social Justice Warriors conspire to drive Christian colleges out of the state. (Hat tip: Ace of Spades HQ.)
  • Once again, California leads the nation…in car thefts.
  • Which lead to this: “More than 71 percent of all recovered stolen cars in 2005 in Texas, New Mexico, Arizona, Nevada, and California were stolen by illegal aliens or by ‘transport coyotes,’ those who bring in illegals across the Mexican border.”
  • “Paul Tanaka, once one of the most powerful law enforcement officials in Los Angeles County, was sentenced Monday to five years in federal prison for interfering with an FBI investigation into jail abuses by sheriff’s deputies.” (Hat tip: Dwight.)
  • Oakland police chief resigns because at least 14 Oakland police officers (and 10 other law enforcement officers had sex with the same underage girl. (Hat tip: Ed Driscoll at Instapundit.)
  • And the guy Oakland found to replace him? He lasted…five days.
  • Bay Area law enforcement agencies have lost 944 guns since 2010. Maybe that’s the “gun control” Democrats should be focusing on… (Hat tip: Stephen Green at Instapundit.)
  • Californians face rolling blackouts this summer…some of which could last as much as 14 days.
  • Shuttered California hospital files for Chapter 7 bankruptcy.
  • You could count this Silicon Valley robot pizza technology startup as a win for California, but the subtext here as that many human California pizza workers will never work a day under that new $15 minimum wage…
  • Texas vs. California Update for June 2, 2016

    Thursday, June 2nd, 2016

    Time for another Texas vs. California update:

  • Once again, Texas is ranked as the best state for business by CEO Magazine, while California is ranked the worst. (Hat tip: Rider Rants via Pension Tsunami.)
  • This OC Register piece offers an good restatement of the general problem:

    California has earned quite a reputation for being openly hostile to business, as confirmed by numerous studies and surveys. Its plethora of taxes and regulations are driving away legions of entrepreneurs and workers, but they are doing wonders for one segment of the economy: the moving industry. It is almost as though that industry is secretly lobbying the state Legislature for its anti-business policies.

    Joe Vranich, as president of Spectrum Location Solutions, an Irvine business relocation consulting firm, knows all about what drives businesses’ decisions to give up and leave for greener pastures. According to his research, in just the past seven years, approximately 9,000 businesses have decided to leave California or expand their operations out of state. Companies leaving California typically save between 20 percent and 35 percent of operating costs, he concluded.

    Texas has been the biggest beneficiary of California’s business exodus.

    Snip.

    California’s litigious climate has become a common complaint of business owners. No wonder the American Tort Reform Foundation once again named California the No. 1 “Judicial Hellhole” in the nation last year, based on the state’s excessive laws and regulations and a flood of disability access, asbestos and food advertising and labeling lawsuits, frequently more opportunistic attempts at extortion than legitimate attempts to seek justice for victims who have been truly harmed.

    California has proven to be a particularly harsh climate for manufacturing businesses. “Even if California were to eliminate the state income taxes tomorrow, that still would not be enough,” CellPoint Corp. CEO Ehsan Gharatappeh told the Dallas Business Journal of the Costa Mesa company’s move to Forth Worth.

    General Magnaplate Corp., which has made reinforced parts for the aerospace, transportation, medical, oil and other industries for 36 years, decided to shut down its California facility in Ventura altogether. “This is a very sad day for our employees and for my family, who have a long history of job creation in this area, but the simple fact is that the state of California does not provide a business-friendly environment,” CEO Candida Aversenti said in a press release. “Increases in workers’ compensation costs and government regulations, combined with predatory citizens groups and law firms that make their living entirely by preying on small businesses, have left us with no other choice but to shut down our California facility. This is in stark contrast to our New Jersey and Texas facilities, which are flourishing in small business-friendly environments created by the respective local governments and environmental agencies.”

  • Tech layoffs double in the Bay area:

    Yahoo’s 279 workers let go this year contributed to the 3,135 tech jobs lost in the four-county region of Santa Clara, San Mateo, Alameda and San Francisco counties from January through April, as did the 50 workers axed at Toshiba America in Livermore and the 71 at Autodesk in San Francisco. In the first four months of last year, just 1,515 Bay Area tech workers were laid off, according to mandatory filings under California’s WARN Act. For that period in 2014, the region’s tech layoffs numbered 1,330.

  • How did the California city of Irwindale rack up the largest per household market pension debt in the state, at $134,907 per household?
  • Low and negative interest rates means that CalPERS must make risky investments to even come close to hitting their yield targets:

    The nation’s largest public pension fund, the California Public Employees’ Retirement System, has one-fifth of its assets in bonds and is down 1.3% since July 1, according to public documents. The system, known by its abbreviation Calpers, also has 53.1% of its assets in stocks, 9% in real estate and 9.4% in private equity. In 2015, Calpers posted a return of 2.4%, below its target rate of 7.5%.

    Nor is CalSTARS doing much better:

    The nation’s second-largest public pension plan, the California State Teachers’ Retirement System, has shifted a significant amount of money away from some stocks and bonds to protect against a downturn. It moved assets into U.S. Treasurys and so-called liquid-alternative funds, which mimic hedge-fund strategies. Calstrs, as the pension is called, reported gains of 1.5% during a choppy 2015, with returns on its fixed-income investments up just 0.6%.

    (Note: WSJ link, so you may need to do the Google thing.)

  • News: Former CalPERS chief executive Fred Buenrostro convicted of bribery. California: Buenrostro will continue to receive his CalPERS pension while in prison. (Hat tip: Pension Tsunami.)
  • Overview of the Texas budget.
  • UnitedHealth exits California’s Obamacare exchanges.
  • Despite that, California wants to offer ObamaCare subsidies to illegal aliens.
  • California also wants to spend more money to send illegal aliens to college.
  • And those illegal aliens with California driver’s licenses still aren’t purchasing liability insurance.
  • Hate California traffic? Tough:

    The newest outrage comes from the Governor’s Office of Planning and Research in the form of a proposed “road diet.” This would essentially halt attempts to expand or improve our roads, even when improvements have been approved by voters. This strategy can only make life worse for most Californians, since nearly 85 percent of us use a car to get to work. This in a state that already has among the worst-maintained roads in the country, with two-thirds of them in poor or mediocre condition.

    Snip.

    In essence, the notion animating the “road diet” is to make congestion so terrible that people will be forced out of their cars and onto transit. It’s not planning for how to make the ways people live today more sustainable. It has, in fact, more in common with Soviet-style social engineering, which was based similarly on a particular notion of “science” and progressive values.

    (Hat tip: Instapundit.)

  • Toyota’s Plano headquarters takes shape.
  • The UAW is making a big push to unionize Tesla’s Fremont plant.
  • Speaking of Tesla, they’re approaching the grand opening of their giant battery factory…in Nevada.
  • McDonald’s CEO says a $15 minimum wage will make his restaurants shift to using robots. But what would McDonald’s know about minimum wage workers?
  • In the same vein, it’s no wonder that Whole Foods opened it’s first semi-automated Whole Foods 365 store in Los Angeles. “Promoted as a ‘chain for millennials,’ the new ‘365’ stores use about one-third less square footage than the company’s traditional 41,000-square-foot Whole Foods stores, but they also slash almost two-thirds of workers with robots and computerized kiosks.” (Hat tip: Director Blue.)
  • Schedule for California high speed rail boondoggle pushed back four more years. Latest obstacle: wealthy equestrians. “Hey, this study says horses won’t mind a super-fast, super loud train zipping along right next to them.” “You mean the study from the institute that two bullet train authority members sit on? Get stuffed!”
  • “The State Assembly Subcommittee on Education voted Tuesday to delay funding to the UC system because of concerns with the UC Retirement Plan, proposed by UC President Janet Napolitano in March, which would cause the university to incur significant costs. The delay was announced after an actuarial report was released earlier that day by Pension Trustees Advisors, or PTA, which showed that the retirement plan would cost the university $500 million in savings, or $34 million a year, over the next 15 years.” (Hat tip: Pension Tsunami.)
  • Maywood, California (which had previously outsourced services to the corrupt city of Bell) is on the brink of bankruptcy. (Hat tip: Dwight.)
  • “Two L.A. sheriff’s deputies convicted of beating mentally ill inmate.”
  • San Francisco liberals versus the city’s police union
  • “Another aviation company has decided to move its corporate headquarters to Fort Worth to take advantage of the Lone Star state’s business friendly environment and the city’s longtime history in the aerospace industry. The move is historic for Burbank, California-based C&S Propeller — an FAA and EASA certified repair station for propeller and airplane maintenance — which has been in California for nearly five decades.”
  • This one’s a wash: XCOR lays off employees in both California and Texas.
  • LinkSwarm for April 11, 2016

    Monday, April 11th, 2016

    Greetings, and welcome to the week known as “Damn, I better finish my taxes.” Here’s a LinkSwarm:

  • Obama’s foreign policy genius exemplified: “In Syria, militias armed by Pentagon fight those armed by the CIA.”
  • If Republicans end up with a brokered convention, expect Ted Cruz, not Paul Ryan, to win the nomination. “[We’re] learning more and more about who those delegates are now that they’re being chosen. They’re not members of the Washington ‘establishment.’ Instead, they’re mostly grass-roots activists, and many of them want Cruz to be their next president.”
  • “Ted Cruz on Saturday clinched the support of every pledged delegate in Colorado, capturing all of the final 13 delegates who will go to the national convention in July and demonstrating his organizational strength in the all-important delegate race.”
  • Indeed, Team Trump screwed up in lots of places:

    From Thursday to Saturday, Trump suffered setbacks in Colorado, Iowa, Michigan, South Carolina and Indiana that raise new doubts about his campaign’s preparedness for the long slog of delegate hunting as the GOP race approaches a possible contested convention. He lost the battle on two fronts. Cruz picked up 28 pledged delegates in Colorado. In the other states, rival campaigns were able to place dozens of their own loyalists in delegate spots pledged to Trump on the first ballot. This will matter if Trump fails to win a majority of delegates on the first ballot in Cleveland, as his delegates defect once party rules allow them to choose the candidate they want to nominate.

    If Donald Trump is as smart as he keeps telling us, how is it he can’t seem to hire anyone smart enough to know how each state’s delegate selection process actually works?

  • Hillary Clinton defends Israel against Bernie Sanders. Hillary finally takes the right side in an issue debate, but what do you want to bet that it hurts her, given the naked anti-Israel/pro-Palestinian bias among the Democratic Party’s activist base?
  • Thanks to the Magic Power of Socialism™, Venezuela is where Zimbabwe was 15 years ago. (Hat tip: Instapundit.)
  • Modern liberalism is dedicated to altering language to advance their agenda, not to mention hiding their many failures.
  • Naval security under Obama looks like it’s just as good as security in the rest of the Obama Administration. (Hat tip: Stephen Green at Instapundit.)
  • America assimilates Muslims much better than Europe.
  • Gun sales soar but “per capita criminal homicides committed with firearms are at their lowest point ever recorded since the FBI began formally tracking that information in 1960.” (Hat tip: Director Blue.)
  • Millionaires are fleeing France. “Polls have shown that about 50% of all French people 18-34 years old, not just the millionaires and billionaires, would leave France if they could.” Why? “Blue model rot, deeply set in across Europe, is pervasive in France.”
  • “70 Tries After Seattle Raised Its Minimum Wage, I Still Can’t Find A Job.”
  • Conservative Rebecca Bradley defeated liberal activists Joanne Kloppenburg for a seat on the Wisconsin supreme court.
  • Thanks to global warming, sea levels are rising. And by “rising” I mean “falling.”
  • Dallas trying to screw property owners yet again.
  • Several ESPN writers are predicting an Astros-Cubs World Series. And the moon became as blood…
  • “New York taxi drivers to be banned from flirting with or ejaculating on passengers.” One of these things is not like the other/One of these things just doesn’t belong…
  • “Understanding Movement In Composition Through The Work Of Akira Kurosawa.”
  • LinkSwarm for March 18, 2016

    Friday, March 18th, 2016

    I hope you’re not too hung over from St. Patrick’s Day (and didn’t get stabbed to death on the Ides of March). Here’s a Friday LinkSwarm:

  • Marco Rubio says that Ted Cruz is the only conservative left in the race. (Hat tip: Director Blue.)
  • John Boehner calls Ted Cruz “Lucifer.” With that even-tempered perspective, it’s impossible to figure out why he’s no longer Speaker…
  • Ted Cruz unveils his national security coalition. Media reports on this have been particularly poor…
  • African-Americans living in poor neighborhoods cannot rely on Democratic leaders to take the decisive steps needed to ameliorate the problem as long as the Democratic Party can take the black vote for granted. The question, then, is how long can Democratic Party leaders and candidates continue to rely on African-American voters before African-American voters take matters into their own hands.”
  • No amount of primary wins will make Hillary Clinton’s email troubles go away.
  • And if the FBI doesn’t get her, the NSA might. (Hat tip: Instapundit.)
  • “The Tea Party movement — which you also failed to understand, and thus mostly despised — was a bourgeois, well-mannered effort (remember how Tea Party protests left the Mall cleaner than before they arrived?) to fix America. It was treated with contempt, smeared as racist, and blocked by a bipartisan coalition of business-as-usual elites. So now you have Trump, who’s not so well-mannered, and his followers, who are not so well-mannered, and you don’t like it.”
  • Got to hand it to Donald Trump: this is an effective ad. (Hat tip: Ace of Spades HQ.)
  • Jews leave France in record numbers. (Hat tip: Ed Driscoll at Instapundit.)
  • Obama Administration finally comes out and admits that the Islamic State has committed genocide against Yazidis, Christians and Shiites. That’s like Harry Truman finally declaring the Holocaust genocide two years after the liberation of Auschwitz…
  • Putin takes his toys and goes home.

    Contrary to his expectations of finding a pliable ally in Iran, he found the Iranians in control, glad to borrow his air force, arrogant and disdainful in Damascus (and Baghdad) and well on the path to dominating a vast stretch of strategically vital territory. And Iran has no interest in playing junior partner to anyone—least of all a traditional Christian enemy.

    Suddenly, Putin had a vision of a nuclear-armed, radical-Shia empire on Russia’s southern flank. Those Iranian missiles that can reach Israel? They can reach major Russian cities, too.

    Putin’s initial bet on Shia Iran also backfired by turning the Islamic world’s Sunni majority against him — not least Saudi Arabia, which can continue to hold down the price of oil and gas, punishing Russia’s economy far more than it wounds American fracking efforts. And Sunni terrorists have taken a renewed interest in Russia.

  • Hellfire missile intercepted in-route to Portland, Oregon.
  • Minimum wage hike causes fast food restaurants to start investing in automation. Just like conservatives said it would.
  • Texas Public Policy Foundation vs. Bureau of Land Management is now TPPF and The State of Texas vs. BLM. (More background here.)
  • Penny Arcade on Gawker:

    Gawker is poison AIDS cancer. In the same way that the Cross is the symbol for the redemptive power of Christ’s blood, Gawker is the symbol of a metastasized social media. Gawker is Nidhogg, the dragon which gnaws at the root of the World Tree. The causes they enunciate are tarnished, just for being in their mouths.”

    I don’t wish ill on anyone who works there, obviously. I mean, I guess their every action technically does sustain a legitimately evil beast of legend, some Revelations type shit, and they ruin lives for profit whenever they aren’t simply wasting your time.

  • Texas Attorney General Ken Paxton rules that state contractors must continue using E-verify.
  • Everything you know about Altamont is wrong. (Hat tip: Ed Driscoll at Instapundit.)
  • The story behind that memorial mural on the pillar at the Lamar underpass right before Fifth Street.

    Lamar Mural

  • Man the pollen in the air is really bad this time of year in Austin…
  • Dog shows up safe a month after being presumed lost at sea. (Hat tip: Borepatch.)
  • Will the last Elvis impersonator to leave Las Vegas please turn off the neon.